India tops in terms of number of IPOs in 2023

A new report by EY India has revealed that Indian stock exchanges including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) ranks 1st in terms of the number of IPOs in 2023, with no cross-border deals.

IPOs in India

The leading global professional services organization mentioned that both BSE and NSE recorded 31 IPOs (including one InvIT) in the fourth quarter of 2023. This is a significant uptick compared to the same period in 2022 and the third quarter of 2023. This represents a remarkable 72% increase over Q4 2022 and a substantial 41% increase over the third quarter (Q3) 2023.

As per Prime Database, a total of 57 Indian corporates raised Rs 49,434 crore through main board IPOs in 2023, 17% lower than the Rs 59,302 crore mobilized by 40 IPOs in 2022. In 2021, a record-breaking 63 IPOs raised a whopping Rs 1,18,723.17 crore.

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Meanwhile, the fourth quarter of 2023 emerged as the standout period of the year, accounting for nearly 40% of the total listings in 2023. In the second half of the year over 18 companies filing their Draft Red Herring signalling a brighter outlook for 2024.

"Looking ahead to Q4FY24, the Indian IPO market is anticipated to continue its upward trajectory, buoyed by optimistic investor sentiment, a robust economy, and expectations of lower inflation and rate cuts in 2024. This positive environment is expected to fuel further growth in both the number and average size of mainboard and SME IPOs," said Adarsh Ranka, Partner and Financial Accounting Advisory Services Leader, member firm of EY Global.

Across the main and SME markets in the fourth quarter of 2023, Consumer Products & Retail sector saw 21 IPOs, Diversified Industrial Products - 14 IPOs, Automotive & Transportation, and Technology sectors witnessed 9 IPOs each.

"From a sectoral perspective, the Power & Utilities, Health, Automotive & Transportation, and Banking and Capital Markets sectors have emerged as the most active, based on recent DRHP filings. Furthermore, the recent amendment by market regulator Sebi to the Real Estate Investment Trusts Regulations, 2014, facilitating the creation of Small & Medium Real Estate Investment Trusts (SM REITs), is poised to spur further growth and innovation in the market," said the report.